With JobKeeper payments being reduced, many Australians are struggling to survive financially. Individuals have either been made redundant or lost their jobs due to the pandemic this year. The importance of planning ahead has been paramount during these unprecedented times, and looking at ways to diversify your income can help you survive in this economy.
One study found that 1 million Australians have a second job and this may be because they are wanting to boost their income or pay off debt. With side hustles becoming an attractive option for individuals, having multiple sources of income is not a bad idea if you want to reach your financial goals even faster.
SkillsTalk go over three benefits that come with having multiple sources of income and how upskilling can help you secure other roles outside of your usual day job.
1. You have financial stability.
One of the benefits that come with having multiple sources of income is that you'll have financial stability. You don't have to rely on one job to pay your bills as you can split your money towards savings, holiday or anything in-between.
For instance, you could be working as a full-time copywriter at an organisation but have a side hustle in social media marketing as extra income. By having skills in other areas that are similar to your line of work, it can help build your professional network as a freelancer. This could work to your benefit, especially if your intention at the end of the day is to be self-employed.
In the age of COVID-19, it's important to have an emergency fund so you have buffer money to fall back on incase you're made redundant or lose your job. By having one, you avoid the situation of taking out funds from your super or experiencing financial stress.
2. You get to use your other talents outside of work.
Have you ever wanted to explore your creative side? Are you keen to start your own side business? By earning income through a side hustle or second job, you get the opportunity to explore other talents outside of your usual day job. By making the most of your other skills, you venture out to career opportunities that you may not have considered before.
For example, you may be great at coding but work outside of the IT industry. You can take advantage of picking up a side hustle where your expertise is needed. By studying the ICT40120 - Certificate IV in Information Technology (Programming),you could add a competitive edge to your current skillset with a qualification, which can help increase your clientele if you do coding on the side.
3. It helps you get closer to your financial goals.
Find that your paycheck can only stretch so far? Having multiple sources of income can help you reach your financial goals much faster.
The benefit of working a side hustle is that you have more disposable income to play with. You put yourself to an advantage because the money that comes from working outside of your day job gives you more wiggle room to do more financially. Depending on your situation, you may want to accomplish the following:
- Boosting super: while retirement seems to be a while away when you're in 20s, it's good to start early and top up when you can. By having access to multiple sources of income, you can easily boost your retirement savings. You can even take advantage of financial initiatives like the First home super saver scheme if you want to save for a house deposit and avoid paying for Lenders Mortgage Insurance (LMI).
- Moving out: this is an exciting milestone for all young adults but it surely can be expensive if you're not prepared. Earning income on the side can be beneficial if you're still living at home as you can bank what you've saved. So, when the time comes where you're ready to flock the nest, you'll have enough money to splurge on furniture and the associated costs that come with moving out.
- Emergency fund: it's better to be safe than sorry, so having an emergency fund in place is a must. By having different income streams, you place yourself in a position where you can avoid financial stress since you don't have to depend on your day job's income entirely. You'll have other income you can fall back on.
Turn your side hustle idea into a reality
If you're interested in having a side hustle outside of your day job, it's important to have the right skills and knowledge in place. With Upskilled having courses spanning in business, community services and IT, you can work towards a qualification that can help boost your chances of earning extra income.
Get in touch with one of their friendly education consultants by calling 1300 009 924 and enquire about an online course today!
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Jana Angeles Jana Angeles is the Content Marketing Specialist at Upskilled. She regularly pens insightful articles on SkillsTalk about online education and career development. Outside of work, you can usually find her at her local record store or having brunch at a fancy cafe.
FAQs
Multiple Income Streams And Their Advantages
- Curbs financial risks and offers stability.
- Help you pay down debt or save for emergencies.
- Provides freedom in choosing a lifestyle.
- Making work decisions.
- Give a sense of fulfilment.
If one source of income declines or fails, the impact on your overall financial situation is reduced because other income streams can offset the loss. This diversification minimizes the risk of depending solely on one source for your financial well-being.
What are the advantages of sources of income? ›
Multiple Sources of Income Benefits
- Financial Security. Having multiple sources of income benefits your financial security. ...
- Freedom in Career Choices. ...
- Get Out of Debt Faster. ...
- Increased Disposable Income. ...
- Protection Against Economic Downturns.
Having money makes it possible for you to start a business, build a dream home, pay the costs associated with having a family, or accomplish other goals you believe will help you live a better life.
What are the benefits of having a lot of money? ›
There are obvious advantages to having more money. You can live in a nicer house and drive a nicer car, take better vacations, provide quality education for your kids, gain improved access to medical care, and have a more comfortable retirement.
Why is it important to have extra income? ›
Increase your savings/emergency fund.
Things may be going good, financially, for you now. But what if you lost your job, were out of work because of injury, or had an unexpected emergency? A part-time job that provides supplemental income can help you create savings for the unexpected.
Why is it important to have more than one source? ›
Using a variety of sources can diminish the effects of bias—the preference of one view over another. Bias may prevent objectivity and often leads to an incomplete representation of information. If blatant bias is present in a source, compensate for it with viewpoints from other sources.
Why is income more important? ›
Income provides economic resources that shape choices about housing, education, child care, food, medical care, and more. Wealth, the accumulation of savings and assets, helps cushion and protect us in times of economic distress. As income and wealth increase or decrease, so do opportunities for health.
Why two incomes are better than one? ›
That is a misconception. Yes, it is true that in the short run, both spouses working may bring in more money. However, that doesn't automatically equal greater financial stability. If the family chooses a lifestyle that relies on using both incomes, the loss of any one job can be financially devastating.
What are the 5 advantages of money? ›
The role of cash
- It ensures your freedom and autonomy. Banknotes and coins are the only form of money that people can keep without involving a third party. ...
- It's legal tender. ...
- It ensures your privacy. ...
- It's inclusive. ...
- It helps you keep track of your expenses. ...
- It's fast. ...
- It's secure. ...
- It's a store of value.
You should cite the sources of information you use in your academic work because:
- Citing makes your work more credible.
- Citing tells your reader where you found your information.
- Citing allows your reader to learn more, beginning with your sources.
- Citing gives credit to the people whose words or ideas you are using.
Helps with long-term financial goals. Higher salaries not only assist with one's immediate financial needs – but can also benefit one's long-term financial goals, too. Those looking to invest in property, a side business, or other long-term ventures may fare better with having an instant source of greater income.
Why do we need multiple sources of income? ›
Financial Resilience: Having multiple income sources can provide a safety net during economic downturns or unexpected financial challenges. Risk Mitigation: Relying on a single income source is risky, as it leaves you vulnerable to job loss, industry changes, or other disruptions.
What is the most important source of income? ›
Tax is a major source of revenue for the government.
What is the importance of income? ›
Income is important for various reasons. It plays a crucial role in meeting basic needs such as education, shelter, and water and sanitation . The amount and source of income can also influence the importance placed on money.
Is it better to have two incomes? ›
That is a misconception. Yes, it is true that in the short run, both spouses working may bring in more money. However, that doesn't automatically equal greater financial stability. If the family chooses a lifestyle that relies on using both incomes, the loss of any one job can be financially devastating.
Is it good to have a second income? ›
Here are some of the benefits of getting a second job: Extra money: Many people pick up a second job for supplemental income , which can help them reach financial goals, fund emergencies or combine with another part-time job to meet everyday needs.
What is it called when you have multiple sources of income? ›
You may have heard of the term “multiple streams of income” but might not be entirely sure what it means. In short, it means having more than one way that you bring in money. This can come from a variety of sources, such as investments, a side hustle, and even your regular job.
